Covid-19: Beneficial to India’s economy?

Kapso 18th May, 2020

Currently, the entire world is facing the consequences COVID-19 pandemic has caused. China, being the believed centre of the origin of the pandemic, has faced a slowdown like never before. sell business

China had adopted free-market principles because of which it has emerged as a market economy and one of the prime investment locations in the world. Its growing markets were promising for many companies and investors. buy business

The situation seems to get more crucial as ample of foreign investors and companies are looking forward to stepping out and shift their bases to other Asian countries and India happens to top the list in the possible destination. India can use this opportunity to have tables turn in favour of expected growth in the economy.

Insights on China economy: sell business india

At the outset of the reforms in 1978, China was poor. It had a GDP per capita lower than half of the Asian average and lower than two-thirds of the African average. China experienced fine average GDP growth of about to 10% per year until 2014, helping 800 million people out of poverty – an incredible achievement. In urban centres in China, poverty has become a once known term that is now virtually diminished. buy business india

Chinese government focused on its strategies based on free-market principles breaking its old soviet style economic policies and reforming some. It resulted in china being one of the top manufacturing and trading hub. Also, China was reported to be the second-largest economy in the world with a GDP of $14.4 Trillion in the year 2019. sell my company

Situations turned when china experienced an outbreak of COVID-19 pandemic. In the first quarter (Q1) of 2020, Foreign direct investment (FDI) showed slowed down and arrived at 10.8 per cent Year-over-Year (YOY) to $31.2 Billion (216.19 Billion Yuan), compared to the first quarter of preceding year 2019, where, FDI in China grew 5.8 per cent from a YOY to $ 136.71Billion (941.5 Billion Yuan). Though Outbound Investment Declined (OID) to 8.2 per cent YOY to $110.6 Billion and amid continuing capital controls. buy a company

Since past years, China had seen a large growth in global FDI (Financial Direct Investments) because of its policies and government motto of “Go-Global”. The Chinese government wants to use FDI as a tool to access Intellectual Property Rights (IPR), Technology, famous brands, etc., in order to move Chinese firms towards upward steps in terms of the value-added chain in manufacturing and services, encourage hype in domestic innovation and development of Chinese brands, and hand-hold Chinese SOEs (State Owned Enterprise) to compete at global levels. Companies for sale

Post COVID19 pandemic, government of China is trying to re-establish itself by reopening businesses, trading, dining, transports, manufacturing units etc. But the lack of demand and orders is being a major setback for china economy. China’s factories are also victims of pandemic-triggered recessions around the world that have made manufacturers pessimistic about export demand. China’s official index of manufacturing purchasing managers dropped to 50.8 in April which is less by 52.0 in March when it had bounced potentially from February’s dismal 35.7. buy business in india

China is facing problem due to lack of business and making it worse are the investors that are disappear or relocating their base to other Asian countries. sell business in india

China is now currently focusing on Free Trade Agreements approach to set afoot once again in the race of the world economy. It is having 24 FTA out of which 16 FTA are already in action. businesses to buy in india

businesses for sale in india

Insights on Indian Economy:

buy existing business in india

Due to the COVID-19 pandemic, the Indian economy is also facing a downtime like other nation in the world. It started in April, due to containment measures and weaker external demand and growth projection for India to 1.9% from 5.8% projected in January, holding that the ‘Extension of Lockdown’ to control the COVID-19 outbreak will pull down the world economy into the worst recession since the Great Depression in the 1930s. On the other hand, however, fiscal stimulus may act as a cushion for the economic blow, along with the supply of funds be expanded and on the basis of Loose Monetary Policy make the funds easily accessible to Industries and entrepreneur to hype economic growth. sell existing business in india

India’s Manufacturing PMI fell to 27.4 in April 2020 from 51.8 in March 2020 and far below market consensus of 42 and India’s Services PMI fall to 5.4 in April 2020 from 49.3, which is far below market consensus of 40.0. The latest reading pointed to the second straight month of contraction in the sector, due to the impact COVID19 pandemic, amid restrictions on the movement of citizens and business shutdowns. But, in the second quarter, it is expected that the Indian economy could see some rising as industries restart their operations with the streamlining of supply chains. buy and sell business in india

buy a business in mumbai

To help the expected pick up, there are 231 operational Special Economic Zone (SEZ) and around 355 SEZ that are notified in India. COVID-19 pandemic may result being the in-hand opportunity for India to compete and bring more capital inflows as long as the government can match after the second quarter of 2020 recovery by providing incentives and other advantages for foreign investors that complement their business plans in India. However, India’s SEZ policy is to be appreciated as it is one of the reasons why there is an increase in the number of foreign firms operating in India.

Foreign Direct Investment in India averaged $1412.87 Million from 1995 until 2020. Although, During COVID-19 pandemic, FDI in India increased by $2873Million in February of 2020 and could be expected to 4000 Million by the end of this quarter. buy a business in delhi

MSMEs have been major contributors in Indian economic growth. But due to the pandemic, these firms have face major loses resulting in some of the permanently shut down due to lack of funds and restriction in movement of the citizens amid buy a business in bangalore

PM Narendra Modi’s “Make in India” initiative has the potential to turn the Indian economy upside down, all for better reasons. With the investment in the manufacturing sector and the advancement of technology, employment opportunities can also be generated. businesses to buy in mumbai

On 12 May, the Prime Minister, in an address to the nation, said that the coronavirus crisis should be seen as an opportunity, laying emphasis on domestic products and "economic self-reliance", an Atmanirbhar Bharat through an “Atmanirbhar Bharat Abhiyan”. The following day the Finance Minister started laying out the details of the Prime Minister's vision which would continue into the next few days. The Finance Minister stated that the aim was to "spur growth" and "self-reliance", which does not mean cutting off from the rest of the world. pvt ltd company for sale in india

Shashi Tharoor called the 'Self-reliant India Mission' a repackaged version of the initiative “Make in India”.

business opportunities in india

About KAPSO

We, Kapso Business Services Pvt. Ltd., an ISO Certified company, are India’s leading Business Brokerage Firm.

We help you reach out to the hottest businesses selling in your area. Follow us on social media to stay updated on what’s trending.